Another frequently searched for company is Saxon Mortgage. Saxon Mortgage is a lender that targets clients with less-than-perfect credit.
Their website states: "At Saxon, we specialize in the business of making loans available to borrowers who need help repairing their credit. Through a nationwide network of mortgage brokers and correspondents, we are able to efficiently serve this previously under-served market. Saxon's roots date back to 1989 and since then we have consistently increased our market share in the sub-prime and non-conforming mortgage arena."
We didn't find their website as helpful as that of other lenders. The information you might be interested in is buried under high-level headings that are not as clear as they could be. However, if you click on the link to Saxon Mortgage Services, you will be able to get to their FAQ section, but not much else unless you already have a mortgage with Saxon.
We didn't come across customer complaints per se, but we certainly stumbled onto some information that implied that Saxon's interest rates were very high in comparison to other lenders. In fact, the online advisor we found states that Saxon is to be avoided because:
- Interest rates approach legal maximums
- Clients subject to excessive charges when paying online or on phone
- Making payments online can be a real nightmare
These points are definite disadvantages. The only advantage to Saxon as far as we could tell is that they will work with you to help you "repair" your credit rating.
If you have had credit problems in the past, this may be a lender you would want to consider. But you need to keep in mind that even if you are a person with a credit challenge, the current interest environment is in your favor. Even individuals with less than perfect credit have been able to qualify for loans with attractive interest rates and terms. Unfortunately there are still companies that will take advantage of the consumer with poor credit through excessively high rates and many additional charges tacked on to the loan. This is all legal.
Therefore, if Saxon is offering you a mortgage but the interest rate and fees are quite high, check with local banks and reputable sources. Chances are that even people with some level of credit problem will qualify with much better terms than a company like Saxon will offer. Be sure to shop around, as always. Compare the interest rate and options that you are quoted by Saxon with other lenders. That way, you'll get the best deal for your situation.
Mortgage Guide 101. Used with permission. See